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5 things you need to know about succession planning

There may never be a good time to lose key leadership figures in a business, but succession planning can minimise the potential disruption. Effective succession planning will keep operations ticking over until critical vacancies are filled, so create a plan for your business before any key roles require replacement.

1. It is a must

All businesses lose good people for a variety of personal or professional reasons. Succession planning is therefore important to ensure the business is well-placed to continue its goals and strategy with the leadership of high performing staff. Filling critical vacancies can be expensive, time consuming and challenging, so employers need to prepare for this by implementing a succession planning process that will allow them to minimise the impact of losing key leaders.

2. Identify potential leaders

Proactively identify and develop high potential employees now so that you have people with the right skills and experience to assume key leadership roles when they become available. As an employer, this will enable you to respond to change more effectively and ensure leadership continuity. It is also an effective process for recognising, developing and retaining top leadership talent.

3. Develop a plan

To create a solid base for your succession plan, start by analysing corporate business plans to identify the positions and skills most critical for business growth. Then establish the key competencies required to undertake these roles and the high potential employees that could step up and assume these positions. Next, determine the training and development required to fill skill gaps and prepare them for advancement. This can include mentoring, coaching, job rotation, secondments, educational programs and formalised feedback processes.

Cultivating soft skills

5. Follow up

Most importantly, succession planning needs to be an ongoing commitment. Managers in all parts of the organisation should be continually identifying gaps in talent and focusing on the development of high performers. This will ensure that people with the best skills are moving into the right jobs at the most necessary times.

Stay tuned to the Michael Page 2017 Asia Salary and Employment Outlook for a discussion of succession planning across the region. Contact us if you would like a copy of the report when it is published.

Summary:

Preparing a succession plan requires the coordination and insights of senior executives. They will usually:

Review business plans

Identify the crucial skills in high-performing employees

Provide coaching on key leadership roles

Succession plans will minimise the impact of key leaders leaving the business and progress talented employees upwards in their career.